* Kiplinger rates Illinois as the least tax-friendly state, mainly because of our property taxes…

Least Tax-Friendly

Illinois’ economic woes are one reason why the Prairie State tops our list of the least tax-friendly states in the country. The state ranks #50 in the latest ranking of states’ fiscal health by the Mercatus Center at George Mason University, and residents are paying the price with higher taxes.

The state’s 4.95% flat income tax rate actually isn’t that high when compared to other states, but other taxes are a doozy. For example, property taxes in Illinois are the second-highest in the nation. On a $400,000 home in the state, the average annual property tax bill would be an eye-popping $9,634.

Sales taxes are high, too. In some municipalities, combined state and local sales taxes exceed 10%. Most states exempt food and drugs from their sales tax, but that’s not the case in Illinois.

* Crain’s…

Connecticut, New York and Wisconsin followed Illinois.

Wyoming was the most tax-friendly on the Kiplinger list, followed by Nevada and Tennessee. Wyoming and Nevada do not have an income tax, while Tennessee’s income tax applies only to interest and dividends, according to MarketWatch.

California did not make the top 10 least tax-friendly states. Although California has one of the highest state income tax rates, it has a progressive income tax with varying rates.

*** UPDATE *** Press release…

Today, Think Big Illinois Executive Director Quentin Fulks released the following statement in response to a new Kiplinger report that ranked Illinois as the least-tax friendly state in the country:

“Illinois’ current tax system is fundamentally unfair, letting millionaires and billionaires avoid paying their share while working families are forced to shoulder the burden. That’s why Think Big Illinois is committed to bringing tax fairness to our state and ensuring our tax system works for everyone, not just the wealthy few.

“During his first legislative session, Governor Pritzker signed a bipartisan balanced budget bringing $8.9 billion in funding to our education system, including nearly half a billion dollars in new funding. This additional funding, along with the revenue generated from the fair tax, will help the state meet its obligation to fund our schools, a critical step toward alleviating the property tax burden on our residents and bringing tax fairness to our state.

“Those who our current tax system benefits are so desperate to avoid paying their share that they’d rather go back to the Rauner years of gutting critical social services, watching our roads and bridges crumble, and forcing local communities to raise property taxes because they refuse to properly fund our schools.

“Illinois’ hardworking families deserve better than that. Think Big Illinois is committed to fighting with Governor Pritzker to ensure our children are getting the quality education they deserve, to lessen the tax burden on our middle and lower-income families, and to bring tax fairness to our state.”